Ed Balls said he could start work with Vince Cable immediately to kick-start the economy with a capital spending programme.

Mr Balls insisted he wanted an outright win for Labour in 2015 but said that in the meantime his party should be working with the Liberal Democrats.

Speaking to Andrew Marr on the BBC, Mr Balls said:

I wish George Osborne would see Vince Cable as a man to do business with and listen to, rather than telling the newspapers he is putting his allies in (to the Business department) to try and surround him and hold him back.

Vince should be listened to on banking reform and on the economy. I could work with Vince. I would like the Liberal Democrats to say right now that this coalition has failed and we're going to change course.

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For two years we have debated was George Osborne's plan was going to work. It's failed. We now know on the latest figures borrowing is not falling, it's rising because of the double dip recession and we've got to act.

A mansion tax is a long term reform. Right now let us kick start this economy and Vince has had ideas about that in the past. I want to work with him on that too and we've got to say to George Osborne 'stop digging a deeper hole, stop being so arrogant when your plan has failed'.

No matter how bad things get, David Cameron, George Osborne and Nick Clegg are desperate to cling on to their failing economic plan - putting their political pride above the long-term interests of the country.

But the country cannot afford to wait until the next election before we get a change of course. Because the longer ministers refuse to act, the more long-term damage will be done to our economy.

That's why I want to work with other parties - including sensible people in the Government - on a new economic plan. In his heart of hearts... Vince Cable must know that Plan A is not working.

Ed Balls issued a fresh appeal to Business Secretary Vince Cable to work with Labour on a Plan B for the economy today as he sought to exploit coalition tensions.

The shadow chancellor said he wanted to join forces with "sensible people in the Government" - singling out the senior Liberal Democrat and giving renewed backing to the "mansion tax" championed by Mr Cable.

His article in the Sunday Mirror came a day after opposition leader Ed Miliband said he was in regular text message contact with the Business Secretary and was "open for business" for joint working in the future.

Deputy Prime Minister Nick Clegg yesterday dismissed claims that his party colleague, tipped by some to lead the party into the 2015 election, was being courted by Labour as "ridiculous" and "schoolboy politics".

But Mr Balls used the article to directly target Mr Cable. The pair are both due to be guests on BBC1's Andrew Marr Show today.